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Average Home Values and Ownership in Zip Code 33405: A Decade of Housing Dynamics in West Palm Beach
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 33405, located in West Palm Beach, Florida, has experienced significant changes in homeownership rates and property values over the past decade. This area has shown a dynamic interplay between ownership percentages, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The ownership percentage in zip code 33405 has fluctuated over the years, with a general downward trend from 2013 to 2016, followed by a period of recovery. In 2013, the homeownership rate was 62%, which declined to 54% by 2016. However, it rebounded to 60% by 2019 and has remained relatively stable since then. Concurrently, average home prices in the area have shown a consistent upward trajectory. In 2013, the average home price was $150,329, which more than tripled to $510,106 by 2022, representing a remarkable 239% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code demonstrates some correlation. As interest rates remained low from 2013 to 2016, hovering around 0.1%, the homeownership rate initially declined. However, as rates began to rise gradually from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized and even showed slight increases. This trend suggests that while low interest rates can make home financing more accessible, other local factors also play a significant role in homeownership decisions.
Renter percentages in zip code 33405 have generally mirrored the inverse of homeownership rates, increasing from 37% in 2013 to a peak of 45% in 2016, before settling back to around 40-43% in recent years. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,164, which increased to $1,220 by 2021, representing a 4.8% increase over eight years. However, there was a slight dip to $1,090 in 2022. The population of the zip code has remained relatively stable, fluctuating between 20,000 and 21,000 residents throughout this period, which suggests that changes in rent prices are more likely influenced by market conditions rather than significant population shifts.
Looking at the most recent data, average home prices in zip code 33405 continued to rise, reaching $537,479 in 2023 and further increasing to $558,658 in 2024. This represents a 5.4% increase from 2022 to 2023 and a further 3.9% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and property values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 33405 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on historical data and current economic conditions, we project average home prices could reach approximately $650,000 to $700,000 by 2029. For average rent prices, we expect a moderate upward trend, potentially reaching $1,300 to $1,400 per month by 2029, assuming continued economic stability and demand for rentals in the area.
In summary, zip code 33405 has demonstrated resilience in its housing market, with steadily increasing average home prices despite fluctuations in homeownership rates. The area has maintained a relatively balanced mix of owners and renters, adapting to changing economic conditions. The recent surge in interest rates, coupled with the consistent rise in property values, suggests that the local real estate market may face new challenges and opportunities in the coming years, potentially affecting affordability and homeownership trends.
